Olympus 2015 Annual Report Download - page 46

Notes:
1) Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions
Cash and deposits and Notes and accounts receivable
Since these items are settled in a short period of time, their carrying value approximates fair value.
Investment securities
The fair value of stocks is based on quoted market prices. The fair value of debt securities and investment trust fund is based on either
quoted market prices or prices provided by the financial institutions making markets in these securities. For information on securities classi-
fied by holding purpose, please refer to Note 5 “Securities.”
Notes and accounts payable and Short-term borrowings
Since these items are settled in a short period of time, their carrying value approximates fair value.
Bonds
The fair value of bonds is based on the present value of the total of principal and interest discounted by an interest rate determined by taking
into account the remaining period of each bond and current credit risk.
Long-term borrowings
The fair value of long-term borrowings is based on the present value of the total of principal and interest discounted by the interest rate to be
applied if similar new borrowings were entered into.
Derivatives transactions
Please refer to Note 29 “Derivative financial instruments.”
2) Financial instruments for which it is extremely difficult to determine the fair value as of March 31, 2014 and 2015
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
1) Non-listed equity securities ................................................................................................................ ¥ 442 ¥ 226 $ 1,883
2) Others ............................................................................................................................................... 2,153 1,843 15,358
Total ...................................................................................................................................................... ¥2,595 ¥2,069 $17,241
Because no quoted market price is available and estimating their future cash flow is deemed to be prohibitively expensive, therefore,
it is extremely difficult to determine the fair value, the above financial instruments are not included in the above table.
3) Redemption schedule for receivables and marketable securities with maturities at March 31, 2014 and 2015
As of March 31, 2014 Millions of yen
Within a year
Over a year
but within
five years
Over five years
but within
ten years Over ten years
Cash and deposits ................................................................................................... ¥252,093 ¥ — ¥— ¥—
Notes and accounts receivable ................................................................................. 132,233 — — —
Investment securities:
Held-to-maturity debt securities:
1) National and local government bonds ........................................................ — — — —
2) Corporate bonds ....................................................................................... — — — —
Other marketable securities with maturities:
1) Corporate bonds ....................................................................................... — — — —
2) Other ......................................................................................................... 781 1,372 — —
Total ......................................................................................................................... ¥385,107 ¥1,372 ¥— ¥—
As of March 31, 2015 Millions of yen
Within a year
Over a year
but within
five years
Over five years
but within
ten years
Over
ten years
Cash and deposits ................................................................................................... ¥209,829 ¥ — ¥— ¥—
Notes and accounts receivable ................................................................................. 148,127 — — —
Investment securities:
Held-to-maturity debt securities:
1) National and local government bonds ........................................................ — — — —
2) Corporate bonds ....................................................................................... — — — —
Other marketable securities with maturities:
1) Corporate bonds ....................................................................................... — — — —
2) Other ......................................................................................................... 382 1,269 — —
Total ¥358,338 ¥1,269 ¥— ¥—
(4) Supplementary explanation of the estimated fair value of nancial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available,
fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions
andfactors could result in different fair values. In addition, the notional amounts of derivatives in Note 29 “Derivative financial instruments”
are not necessarily indicative of the actual market risk involved in derivative transactions.
Estimated Fair Value of Financial Instruments
Carrying value of financial instruments on the consolidated balance sheets as of March 31, 2014 and 2015 and estimated fair value are
shown in the following table. The following table does not include financial instruments for which it is extremely difficult to determine the fair
value (refer to 2) below:
As of March 31, 2014 Millions of yen
Carrying value
Estimated
fairvalue Difference
Assets:
1) Cash and deposits ......................................................................................................................... ¥252,121 ¥252,121 ¥ —
2) Notes and accounts receivable ...................................................................................................... 132,233 132,233 —
3) Investment securities ...................................................................................................................... 51,070 51,070 —
Total ................................................................................................................................................... ¥435,424 ¥435,424 ¥ —
Liabilities:
1) Notes and accounts payable .......................................................................................................... ¥ 45,409 ¥ 45,409 ¥ —
2) Short-term borrowings ................................................................................................................... 16,966 16,966 —
3) Bonds, including current maturities ................................................................................................ 55,000 56,325 1,325
4) Long-term borrowings, including current maturities ........................................................................ 343,865 353,494 9,629
Total ................................................................................................................................................... ¥461,240 ¥472,194 ¥10,954
Derivatives* ............................................................................................................................................ ¥ (115) ¥ (115) ¥ —
As of March 31, 2015 Millions of yen
Carrying value
Estimated
fair value Difference
Assets:
1) Cash and deposits ......................................................................................................................... ¥209,875 ¥209,875 ¥ —
2) Notes and accounts receivable ...................................................................................................... 148,127 148,127 —
3) Investment securities ...................................................................................................................... 67,483 67,483 —
Total ................................................................................................................................................... ¥425,485 ¥425,485 ¥ —
Liabilities:
1) Notes and accounts payable .......................................................................................................... ¥ 39,155 ¥ 39,155 ¥ —
2) Short-term borrowings ................................................................................................................... 29,118 29,118 —
3) Bonds, including current maturities ................................................................................................ 55,000 55,669 669
4) Long-term borrowings, including current maturities ........................................................................ 270,303 275,195 4,892
Total ................................................................................................................................................... ¥393,576 ¥399,137 ¥5,561
Derivatives* ............................................................................................................................................ ¥ (1,254) ¥ (1,254) ¥ —
As of March 31, 2015 Thousands of U.S. dollars
Carrying value
Estimated
fair value Difference
Assets:
1) Cash and deposits ......................................................................................................................... $1,748,958 $1,748,958 $ —
2) Notes and accounts receivable ...................................................................................................... 1,234,392 1,234,392 —
3) Investment securities ...................................................................................................................... 562,358 562,358 —
Total ................................................................................................................................................... $3,545,708 $3,545,708 $ —
Liabilities:
1) Notes and accounts payable .......................................................................................................... $ 326,292 $ 326,292 $ —
2) Short-term borrowings ................................................................................................................... 242,650 242,650 —
3) Bonds, including current maturities ................................................................................................ 458,333 463,908 5,575
4) Long-term borrowings, including current maturities ........................................................................ 2,252,525 2,293,292 40,767
Total ................................................................................................................................................... $3,279,800 $3,326,142 $46,342
Derivatives* ............................................................................................................................................ $ (10,450) $ (10,450) $ —
* The value of assets and liabilities arising from derivatives is shown at net value, with the amount in parentheses representing net liability position.
Notes to the Consolidated Financial Statements
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OLYMPUS Annual Report 2015
88 OLYMPUS Annual Report 2015